The San Antonio Express-News reports Mills, who could be out until the middle of the season, agreed to a three-year contract. He may be sidelined up to seven months due to a torn rotator cuff in his right shoulder, according to the newspaper.

The deal for Mills is reportedly worth $12 million. The 25-year-old Australian averaged 10.2 points in 81 contests last season. He shot 42.5 percent from 3- point range, which was among the top-10 in the NBA.

Teams may strike verbal deals with players, but the league-wide moratorium on signings will not be lifted until July 10.

Last week, the Spurs announced forward Tim Duncan had exercised the option on his contract for the 2014-15 season.